Bankruptcy Exemptions in Massachusetts
Protecting Your Assets Under Massachusetts and Federal Exemption Law
Bankruptcy exemptions determine what you keep. In Chapter 7, they draw the line between property the trustee can liquidate and property that stays with you. In Chapter 13, they influence how much you must pay unsecured creditors over the life of your plan. Getting that calculation right before you file matters more than most filers realize.
At The Law Office of Glenn F. Russell, Jr., we’ve worked with individuals and families across Massachusetts on consumer debt relief since 2007. Because our practice combines bankruptcy with foreclosure defense litigation, we evaluate exemption elections alongside mortgage arrears and foreclosure timing, not as a separate checklist.
If you’re weighing a bankruptcy filing and want to know what Massachusetts law protects, call us at (888) 400-9318 for a free consultation before you file.
The Massachusetts Homestead Exemption
Massachusetts automatically protects up to $125,000 of equity in a primary residence without any action on your part. Recording a Declaration of Homestead at your county’s Registry of Deeds raises that protection to $1,000,000. A law change effective August 6, 2024, increased the prior $500,000 cap. Homeowners with an existing declaration receive the higher amount automatically without re-filing.
Filers who are 62 or older or disabled can file a separate elderly or disabled homestead declaration protecting up to $1,000,000 per person. Qualifying spouses can combine declarations for up to $2,000,000 in protection on one residence. That’s significant coverage, but it has limits: homestead protection doesn’t shield your home from first- or second-mortgage lenders, tax liens, or a divorce judgment requiring transfer of title.
Massachusetts Exemptions vs. Federal Exemptions: An All-or-Nothing Choice
Massachusetts filers must choose between the complete Massachusetts exemption list and the complete federal exemption list. You can’t mix and match provisions from both systems. To use Massachusetts exemptions, you must have lived in the state for at least 730 days before filing. If you haven’t, exemptions from the state where you lived during the relevant 180-day lookback period may apply instead.
The two systems offer meaningfully different coverage across several categories:
Motor Vehicle Exemption
Massachusetts protects up to $7,500 in equity in one vehicle, rising to $15,000 if you’re disabled or at least 60 years old. The federal alternative is $5,025.
Wildcard Exemption
Massachusetts allows $1,000 for any personal property, plus up to $5,000 of any unused motor vehicle, household furniture, or tools-of-trade exemption. The federal wildcard is $1,675 plus up to $15,800 of unused homestead protection, current through March 31, 2028.
Homestead Comparison
The federal homestead exemption is $31,575, current through March 31, 2028. For homeowners with a recorded Declaration of Homestead, Massachusetts’s $1,000,000 protection is substantially higher. For renters or those without significant equity, the federal wildcard’s unused-homestead carryover may offer more flexibility.
One practical difference worth noting: Massachusetts exemption amounts are largely fixed by statute and don’t adjust automatically for inflation. Federal amounts reset every three years, with the next scheduled update on April 1, 2028.
Wages, Retirement, and Public Benefits Under Massachusetts Law
Massachusetts protects 85% of gross wages, or 50 times the state minimum hourly wage, whichever is greater. Most retirement accounts and pensions are protected as well, though the specific statutory scope is narrower than under federal exemptions. Social Security, unemployment compensation, workers’ compensation, veterans’ benefits, and public assistance are fully exempt regardless of value.
For married couples filing jointly, Massachusetts generally allows doubling of most exemption amounts, but property must be co-owned to qualify, and the homestead exemption itself isn’t doubled.
Attorney Glenn F. Russell, Jr. has litigated cases in federal and appellate courts that have shaped foreclosure defense law in Massachusetts, drawing national and international attention. That appellate background informs how we approach exemption planning for clients filing in the United States Bankruptcy Court for the District of Massachusetts, where trustee scrutiny and case law both matter.
Start with a Free Consultation Before You File
Exemption elections are made at filing and are difficult to correct after the fact. A free consultation gives us the chance to review your assets, your mortgage situation, and your chapter options together before any deadlines close off a practical path forward.
Call (888) 400-9318 to schedule your free consultation and learn which exemptions may apply to your situation before you file.
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Our FAQ
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Do I really need a foreclosure lawyer?Absolutely. Should you need foreclosure defense counsel, only an experienced attorney can determine which course of action is best for you. Whereas predatory scam artists try to prey on your financial vulnerability, a skilled foreclosure defense attorney genuinely can look out for the best interest of you and your family. Legal advice must be practical and efficient in order to be effective, so if you need strong legal guidance, trust that The Law Office of Glenn F. Russell, Jr. can offer the counsel needed to successfully navigate the complicated legalities of foreclosure or bankruptcy.
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Third parties are offering to help my foreclosure process. How do I know who to trust?
Perhaps one of the greatest obstacles individuals encounter during the foreclosure process is learning who to trust and who to avoid. Due to the nature of the foreclosure process, descriptions of any homes being foreclosed may be published and accessible as public information. It is a sad truth that there are fraudulent companies that prey on public lists of foreclosing homes and attempt to take advantage of a people's financial vulnerability.
You may be contacted by mortgage brokers, mortgage negotiators, or mortgage holders. You may also be contacted by a Massachusetts bankruptcy attorney or a private financier who offers to help you sort out your finances. These parties may be dependable sources of legal and helpful advice during your foreclosure.
Unfortunately, there are frauds and scam artists who will try to take your home or your money without providing any sort of service. A general word of advice we give to clients to follow is: If a deal sounds too good to be true, it probably is. Avoid scams with the help of a qualified attorney from our firm!
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What happens at a foreclosure sale?
It doesn't happen all the time, but if you have exhausted all of your legal alternatives and feel as though a foreclosure or short sale is the last resort, you need to know what to expect.
No foreclosure sale is exactly the same, but for the most part, the foreclosure sale process typically involves the following:
- Lenders must first send a notice of a foreclosure to the homeowner. The notice must be sent at least 14 days prior to the foreclosure sale date.
- A foreclosure sale will take place at the date, time, and place specified in the foreclosure notice.
- The foreclosure sale will be conducted by a licensed auctioneer. The auctioneer will read various legal notices, descriptions, and documents pertaining to the property.
- The auctioneer will take bids on the property, take deposit checks, and accept the highest bid to close the foreclosure property sale.
- Parties - including the mortgagor, the purchaser, and the auctioneer - will draft a foreclosure deed, which must be recorded and filed at the Registry of Deeds.
- A grace period - typically 30 days - will be given to allow the purchaser to line up financing.
- A closing will take place, and the new owner will formally take title to the foreclosed property.
All monies paid by the new purchaser will go toward paying real estate taxes, owed mortgages, and payments to creditors or other debts owed on the property. If no one at the foreclosure sale is able to bid a high enough amount to cover the debt of the property, then the balanced owed - called a deficiency - would then be the liability of the old owner.